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B-155343, JUL. 26, 1966

B-155343 Jul 26, 1966
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TO THE SECRETARY OF THE INTERIOR: REFERENCE IS MADE TO A LETTER DATED APRIL 20. THE PROPOSED SETTLEMENT WAS ACCEPTABLE TO THE CONTRACTOR. THE MATTER WAS REFERRED HERE PURSUANT TO OUR DECISION TO YOU OF DECEMBER 22. WHILE THE NATIONAL PARK SERVICE OF THE DEPARTMENT OF THE INTERIOR WAS THE CONTRACTING AGENCY. WAS DIRECTLY IN CHARGE OF THE ACTUAL CONSTRUCTION SUPERVISION AND INSPECTION. THE SETTLEMENT FIGURE SHOWN IN THE LETTER OF APRIL 20 APPEARS TO HAVE BEEN DEVELOPED PRINCIPALLY BY THAT BUREAU. WE BELIEVE THAT THE REVISED BASIS BY THE BUREAU FOR ALLOCATING THE OVERHEAD COSTS TO THE DELAY PERIOD IS REASONABLE. THAT THE SETTLEMENT IS ADEQUATELY SUPPORTED BY THE RECORD. WE HAVE NO OBJECTION TO THE PAYMENT OF $44.

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B-155343, JUL. 26, 1966

TO THE SECRETARY OF THE INTERIOR:

REFERENCE IS MADE TO A LETTER DATED APRIL 20, 1966, WITH ENCLOSURES, FROM THE DEPUTY ASSISTANT SECRETARY OF THE INTERIOR SUBMITTING FOR OUR APPROVAL A PROPOSED FINAL VOUCHER FOR $46,671.08 IN SETTLEMENT OF ALL CLAIMS AGAINST THE UNITED STATES OF J.O. AND C.M. STUART, INC., ARISING OUT OF CONTRACT NO. 14-10-0100-1184 (IBCA DOCKET NO. 433-3-64), PROJECT 1A22, GEORGE WASHINGTON MEMORIAL PARKWAY. THE PROPOSED SETTLEMENT WAS ACCEPTABLE TO THE CONTRACTOR, AND THE MATTER WAS REFERRED HERE PURSUANT TO OUR DECISION TO YOU OF DECEMBER 22, 1964, B 155343.

WHILE THE NATIONAL PARK SERVICE OF THE DEPARTMENT OF THE INTERIOR WAS THE CONTRACTING AGENCY, THE BUREAU OF PUBLIC ROADS, DEPARTMENT OF COMMERCE, WAS DIRECTLY IN CHARGE OF THE ACTUAL CONSTRUCTION SUPERVISION AND INSPECTION, AND THE SETTLEMENT FIGURE SHOWN IN THE LETTER OF APRIL 20 APPEARS TO HAVE BEEN DEVELOPED PRINCIPALLY BY THAT BUREAU. DURING A REVIEW OF THE SUBJECT CLAIM AND ITS SUPPORTING DATA BY REPRESENTATIVES OF THE CIVIL ACCOUNTING AND AUDITING DIVISION OF THIS OFFICE, CERTAIN QUESTIONS AROSE RELATIVE TO THE ALLOWANCES FOR OVERHEAD EXPENSES. REPRESENTATIVES OF THAT DIVISION SUBSEQUENTLY MET WITH OFFICIALS OF THE CONTRACTOR AND BUREAU OF PUBLIC ROADS TO EXPLAIN OUR POSITION AND TO REQUEST ADDITIONAL SUPPORT FOR SUCH ALLOWANCES. AS A RESULT OF OUR QUESTIONS, THE BUREAU REEVALUATED THE OVERHEAD EXPENSES COMPUTATIONS PURSUANT TO WHICH IT SUGGESTED THAT THE PROPOSED SETTLEMENT BE REDUCED BY $1,826.03 TO THE AMOUNT OF $44,845.05.

THE FILE NOW CONTAINS A REVISED AGREEMENT SHOWING MUTUAL ACCEPTANCE OF THE NEW FIGURE, $44,845.05, BY ALL PARTIES CONCERNED, INCLUDING YOUR ASSISTANT DIRECTOR, NATIONAL PARK SERVICE, IN FULL SETTLEMENT OF THE CONTRACTOR'S CLAIMS.

WE BELIEVE THAT THE REVISED BASIS BY THE BUREAU FOR ALLOCATING THE OVERHEAD COSTS TO THE DELAY PERIOD IS REASONABLE, AND THAT THE SETTLEMENT IS ADEQUATELY SUPPORTED BY THE RECORD. ACCORDINGLY, WE HAVE NO OBJECTION TO THE PAYMENT OF $44,845.05, AS NOW PROPOSED AND MUTUALLY AGREED UPON, IN FINAL DISPOSITION OF THIS MATTER.

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